Australia Yearbook - 2001

1004 Year Book Australia 2001
30.2 BALANCE OF PAYMENTS, Summary
1994–95 1995–96 1996–97
1997–98
1998–99
1999–00
$m $m $m $m $m $m
Current account –28 646 –21 645 –17 818 –22 818 –33 716 –33 677
Goods and services –10 000 –1 983 1 570 –4 738 –14 610 –15 180
Credits 87 654 99 095 105 160 113 744 111 843 125 774
Debits –97 654 –101 078 –103 590 –118 482 –126 453 –140 954
Goods –8 216 –1 583 1 496 –3 546 –12 740 –13 331
Credits 67 101 76 146 80 934 88 538 85 687 97 476
Debits –75 317 –77 729 –79 438 –92 084 –98 427 –110 807
Services –1 784 –400 74 –1 192 –1 870 –1 849
Credits 20 553 22 949 24 226 25 206 26 156 28 298
Debits –22 337 –23 349 –24 152 –26 398 –28 026 –30 147
Income –18 118 –19 533 –19 307 –18 005 –18 328 –18 591
Credits 6 941 7 140 8 563 10 384 9 998 12 744
Debits –25 059 –26 673 –27 870 –28 389 –28 326 –31 335
Current transfers –528 –129 –81 –75 –778 94
Credits 3 026 3 292 3 497 3 976 4 599 4 562
Debits –3 554 –3 421 –3 578 –4 051 –5 377 –4 558
Capital and financial account 28 610 22 320 17 309 23 747 33 372 34 218
Capital account 572 1 074 1 317 1 127 1 167 1 119
Capital transfers 540 1 049 1 323 1 097 1 186 1 183
Credits 1 383 1 956 2 200 2 068 2 197 2 413
Debits –843 –907 –877 –971 –1 011 –1 230
Net acquisition/disposal of non-produced,
non-financial assets 32 25 –6 30 –19 –64
Financial account 28 038 21 246 15 992 22 620 32 205 33 099
Direct investment 4 081 4 846 4 901 1 475 13 190 9 918
Abroad –3 428 –7 955 –5 726 –6 462 –672 –1 901
In Australia 7 509 12 801 10 627 7 937 13 862 11 819
Portfolio investment 18 377 25 934 16 084 16 937 8 610 16 544
Other investment 3 609 –8 717 210 3 750 10 799 9 259
Reserve assets 1 971 –817 –5 203 458 –394 –2 622
Net errors and omissions 36 –675 509 –929 344 –541
Source: Balance of Payments and International Investment Position, Australia (5302.0).
Graph 30.3 illustrates the differing influences of
the trade balance and the net income deficit on
the balance on current account. With both
increasing levels of debt and higher interest rates
in the late 1980s and early 1990s, the net income
deficit rose rapidly from about $6b in 1984–85 to
$18–19b each year from 1994–95 onwards. The
underlying level of net income will continue to
drive the level and direction of the current
account deficit as Australia continues to service its
external liabilities. However the trade deficit has
fluctuated quite significantly over the past 16 years.
While the deficit has averaged a little over $5b per
year it has swung from surpluses of about $2b to
deficits of $15b. The volatility of this series is
mirrored in the plot line for the current account
deficit in graph 30.3.
Table 30.4 shows the annual levels of Australia’s
official reserve assets and both the end of year
and period average exchange rates for the major
currencies, special drawing rights, and the trade
weighted index.